Presented at the Western Power Summit on November 6, 2014 during a panel discussion on "California’s Energy Storage Directive and Implications for the West".

1. What is Driving Energy Storage Deployment?
Western Power Summit – Las Vegas
Cedric Christensen, Director of Market Development
November 5, 2014

2. Unparalleled experience in PV and energy storage
2
California Energy Storage Alliance (CESA)
»Founded in January, 2009
»85 member companies
»Active in over 20 regulatory proceedings at CPUC, CAISO, and CEC
Strategen Consulting
»Started consulting in PV and energy storage space in 2005
»Unique focus in strategic advisory work in the clean energy industry
Energy Storage North America (ESNA)
»Largest storage conference in the world
»28 countries in attendance
»Regulators, utilities, large strategic accounts, and start-ups

3. Energy Storage Is A Very Broad Asset Class
3
Electro-Chemical Storage
(Flow battery / Lithium Ion )
Mechanical Storage
(Flywheel)
Bulk Mechanical Storage
(Compressed Air)
Thermal Storage
(Ice / Molten Salt)
Bulk Gravitational Storage
(Pumped Hydro)
Transportation
(Electric Vehicles)

4. Broad Electric Power System Applicability
4
Bulk Storage
Ancillary Services
Distributed
Storage
Distributed Storage
Commercial Storage
Residential Storage
Courtesy of:

5. Global Operational Energy Storage
5

6. Global Projected Energy Storage through 2020
6

7. Operational Energy Storage (non-hydro)
7

8. Planned Operational Energy Storage (non-hydro)
8

9. Countries Leading ES Deployment (non-hydro)
9

10. Regional Hubs for US Deployment
10

11. Primary Use Cases (non-hydro)
11

12. California Leadership: IOUs and MOUs
12
1,325+ MW
350+ MW

13. Energy Storage Policy in California
13
CPUC
•Resource Adequacy
•Demand Response
•Storage Rulemaking
•Alternative Fuel Vehicles
•Interconnection
•Permanent Load Shifting
•Rate Design
•AB 327
•Integrated Demand Side Management
•Self Generation Incentive Program
•Interconnection
•Long Term Procurement Planning
•Renewable Portfolio Standard
CEC
•EPIC Program
•POU AB2514 Targets
CAISO
•Energy Storage Roadmap
•Flexible Resource Adequacy
•Transmission Planning Process

14. 14
AB 2514
–1,325 MW procured by 2020
OTC and SONGS retirement
–6,209 MW of Retiring OTC Capacity by 2024
Long Term Procurement Planning
–SCE (250 MW)
–SDG&E (25 – 200 MW)
CAISO Reforms to Wholesale Market
–Market design updates specific to storage
–Storage being considered in transmission planning process
–Updates to interconnection process
Self Generation Incentive Program
–- $83M/year through 2020
Net Energy Metering / Rate Design
Factors Advancing Energy Storage in CA

15. Assigned Commissioner’s Ruling: 1.325 GW Goal!
Use case category, by utility
2014
2016
2018
2020
Total
Southern California Edison
Transmission
50
65
85
110
310
Distribution
30
40
50
65
185
Customer
10
15
25
35
85
Subtotal SCE
90
120
160
210
580
Pacific Gas & Electric
Transmission
50
65
85
110
310
Distribution
30
40
50
65
185
Customer
10
15
25
35
85
Subtotal PG&E
90
120
160
210
580
San Diego Gas & Electric
Transmission
10
15
22
33
80
Distribution
7
10
15
23
55
Customer
3
5
8
14
30
Subtotal SDG&E
20
30
45
70
165
Total – all 3 Utilities
200
270
365
490
1,325

16. © 2014 California Energy Storage Alliance
California’s “Duck Curve”
16

17. March 2014
Source: CAISO 2014 Flex Capacity Needs Assessment
Renewable Output in California

18. March 2014
Source: CAISO 2014 Flex Capacity Needs Assessment
Renewable Effect on California Net Load

19. Forecast Load Growth from Electric Vehicles in California
19
Source: Vehicle - Grid Integration: A Vision for Zero-Emission Transportation Interconnected throughout California’s Electricity System;
California Public Utility Commission, March 2014. R.13-11-007. Pg. 3.

20. Energy Storage: ~3X the Flexible Range per MW
20
Compare benefits, not megawatts
100MW LMS 100 Gas Peaker Plant1
100MW Energy Storage System
30MW Min. Output (when no emissions constraints)
100MW
Max. Output
70 MW Range
100MW Discharge
-100MW Charge
200MW Range
1.LMS Plant Picture Source: http://www.industcards.com/cc-usa-ca-n.htm (Panoche Power Plant, Firebaugh, CA)

21. Energy Storage: 3X the Utilization
21
100 MW
LMS 100
Gas Peaker Plant1
100MW
Energy Storage System
>95%
Utilization
Utilization
20%-40%
0%
50%
100%
Startup Time
Shutdown Time
Min Utilization
Max Utilization
Unutilized
0%
50%
100%
Startup Time
Shutdown Time
Min Utilization
Max Utilization
Unutilized
1.LMS Plant Picture Source: http://www.industcards.com/cc-usa-ca-n.htm (Panoche Power Plant, Firebaugh, CA)

22. 22
Energy Storage System
Full Power Ramp <1 second
Graph Source: Kirby, B. “Ancillary Services: Technical and Commercial Insights.” Wartsilla, July, 2007. pg. 13
1. http://www.cpvsentinel.com/about.html
LMS 100 Gas Peaker Plant Full Power Ramp 10 Minutes
Energy Storage Responds More Quickly

23. Storage Is Now Part of Long Term Procurement Planning
LTPP decision requires minimum of 50MW (SCE) for local capacity requirements
SCE LCR Track 1 Decision 2/12/13, SCE Track 4 Decision 2/11/14
SCE Procurement Authorization and Requirements (Track 1 and Track 4)
261.1 MW
»West LA Basin
»Moorpark

24. More Information
Thank you!
Cedric Christensen
Director of Market Development
–Email: cchristensen@strategen.com
–Office: +1 510 665 7811 x 105